Bitcoin Price Remains Subdued as BTC Exodus From Exchanges Continues

BlocDesk Coinbase and Four Other Crypto Exchanges Hold 10% of Bitcoin Current Supply

The Bitcoin price rally continues on wobbly legs, as noting bearish momentum is virtually impossible. That is surprising, as the amount of BTC on exchanges keeps declining rapidly. Coinbase is bleeding BTC lately, but OKEx and Binance aren’t faring much better.

Coinbase Users Are Moving Their BTC

It is always worthwhile to analyze the Bitcoin exchange flows these days. Since the halving of 2020, miners can only generate 900 BTC per day through mining. That is not a lot of money and should be sufficient to keep the Bitcoin price stable or in a bull market. Unfortunately, that is not the case, as BTC keeps losing value every day lately.

Even today, there is a 4.22% price decline for Bitcoin. While that is not unusual on a Sunday, there are other factors to take into account. According to Viewbase, only 1,532,623 bitcoins are available for purchase on centralized exchanges today. This represents 7.3% of the circulation supply. Based on that figure, traders cannot keep down the Bitcoin price for long.

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BlocDesk BTC Exchanges
Source: Viewbase

What is even more remarkable is how all major exchanges are losing BTC balances rapidly. Coinbase is the biggest “dipper”, losing nearly 15,000 BTC today alone. Some of these funds may move to a cold storage solution with a wallet address not tracked by this website.  Even so, an outflow of nearly 15,000 is big for any trading platform.

Both Binance and OKEx note a decrease of over 3,000 BTC in the past 24 hours. These amounts are very substantial and not figures one would associate with these top exchanges either. With more exchanges noting an outflow of BTC rather than an inflow, the current Bitcoin price sentiment makes no real sense. 

The Trend Isn’t New

Looking back by 30 days, this trend is not new by any means. The exchange outflow has been taking place for months, without skipping a beat. It is now a matter of finding new investors and traders willing to buy BTC at the current price. That is proving a bit difficult, judging by the price momentum. Coinbase has “lost” nearly 43,300 BTC in the past month, albeit some of that is likely in cold storage right now.

BlocDesk Exchanges Outfflow 1Y
Source: Viewbase

What is remarkable is how both Binance and Bitfinex record strong Bitcoin inflows. These two exchanges have welcomed over 52,000 BTC in the past month. As such, the net outflow of just under 13,000 BTC seems less significant. Until traders and speculators actively buy more BTC than is available, a price reversal remains unlikely. 

That said, the future doesn’t look half bad for the world’s leading cryptocurrency either. It still maintains a value of over $32,000 with ease despite meeting bearish pressure in recent weeks. A year ago, reaching this value seemed impossible. With Bitcoin, it is crucial to maintain a long-term perspective at all times. Short-term fluctuations are far less significant than you may think.